Port of Tallinn Inks Deal to Build New Liquefied Methane Terminal
Tallinna Sadam and JetGas OÜ have signed an agreement for establishment of a liquefied methane terminal in Muuga Harbour, located on the southern coast of the Gulf of Finland.
According to the agreement, JetGas will build a liquified methane terminal with up to five storage tanks in stages, with a connecting pipeline to the quayline, by 2030 at the latest.
The launch of the first stage of the terminal with the construction of one tank is planned for the end of 2027.
Tallinna Sadam launched a competition to find cooperation partners for the development of the 7.6 ha area located in the eastern part of the largest cargo port in Estonia - Muuga Harbour - in spring.
A superficies right agreement was signed with JetGas for an area of approximately 7,000 m2 with a term of 30 years.
In addition to right of superficies revenues the project will create new freight charges and vessel dues income for the port, while no new investments are required from Tallinna Sadam.
"The construction of the liquefied methane terminal is the result of a tender process initiated last spring, the aim of which was to find new operators for vacant areas of Muuga Harbour.
“The new terminal and cooperation with JetGas, as a long-term player in the energy products market, will bring us additional vessel calls and cargo volumes and will create opportunities for the transport sector when switching to more environmentally friendly fuels," said Valdo Kalm, the Chairman of the Management Board of Tallinna Sadam, welcomed the new cargo operator.
"Construction of the new liquefied methane terminal in Muuga Harbour will allow us to obtain primarily bioLNG, but also other methane fuels in larger consignments from the world market, resulting in cheaper prices and better security of supply," added Janek Parkman, chairman of the JetGas Management Board.
Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region.
In addition to passenger and freight services, Tallinna Sadam group also operates in shipping business via its subsidiaries – OÜ TS Laevad provides ferry services between the Estonian mainland and the largest islands, and OÜ TS Shipping charters its multifunctional vessel Botnica for icebreaking and offshore services in Estonia and projects abroad.